Amedeo Res Share Discussion Threads

[knicol46] 12/2/2016 12:22

15.7p to buy now

[howdlep] 12/2/2016 11:51

Outside the four main shareholders, the free float is c19%. Hence why thin volume affects the share price so quickly:-

[howdlep] 12/2/2016 11:46

Sold down on very thin volume. Now ready to bounce back and will do so quickly, given the very small free float.

Here is the post Interims note from W.H. Ireland, dated 28/9/15. Please note, the jack-up rig has now been completed (see RNS 21/12/15). "Testing, including to American Bureau of Shipping classifications, and commissioning, which constitute a key part of the delivery package, have already commenced and are expected to be completed during 2016."

Amedeo Resources* (AMED) – Speculative Buy – Interims – costs reduced in a challenging market

Market Cap £8.2m Price 25p Target 75p
​

Amedeo Resources is a resource and energy related infrastructure and asset investment company. This morning, the Group has reported interim results, which demonstrate a tight control of costs against the challenging market backdrops in which Amedeo’s investment companies operate. Administrative costs declined by 25.4% to $0.3m, with cash administrative costs down 45.3% to $0.2m as a result of fees associated with the investment made in the YZJ JV and non-recoverable VAT in the prior year. The overall loss on ordinary activities stood at $0.6m (H1 2014A $0.8m), with the loss per share at 2.09c. Net cash increased to $3.3m (FY 2014A $1.7m), benefitting from the repayment from MGR of the $2.0m convertible loan (with the $1.9m loan outstanding to Amedeo still remaining). As at 30 June, the carrying value of investments in associates stood at $18.6m (H1 2014A $19.7m).
​

The first rig order, for a Le Tourneau Super 116E Class design, self-elevating mobile offshore jack up drilling rig, is reported to have continued to quality and is on schedule to be completed by the end of this year, and ahead of commissioning during 2016. Against the current market backdrop, no further orders have been obtained but the New Yard is absorbing container block overspill from Yangzijiang Shipbuilding’s yards. MGR scaled back its iron ore operations given the price declines, and is currently exploring other broking opportunities, including in soft commodities.
​

We make no changes to our estimates following the results (FY 2015E EPS -4.1c, FY 2016E EPS 1.9c). The potential for the Group is significant given the backing provided by operating partners, majority shareholder, track record of management and proven ability to keep costs to a minimum. Set against these positives, this remains an early stage investment in a Group whose principal investment has a limited track record in an extremely challenging market. However, given the significant potential when the cycle turns, we maintain our 75p share price target and Speculative Buy stance.

[knicol46] 12/2/2016 11:19

SP +11% something has leaked! £6m mcap, $23m net assets at last report well undervalue

[dosser2] 12/2/2016 11:17

Someone picking up cheap shares. Spread not bad either for a change

[dosser2] 12/2/2016 11:17

Someone picking up cheap shares. Spread not bad either for a change

[mike111d] 11/2/2016 16:10

Irish eyes not shining here it would seem, good luck to those still holding.

[davethechef] 28/1/2016 11:23

This forecast, if it proves correct will help sentiment & likelihood of further orders. But obviously, oil prices need to recover to $75 or above going into the next decade, to attract interest, to our offshore yard.

And there still is the possibility of LNG, clean energy vessels interest too, as has been suggested by the chairman of our JV partners.

[dosser2] 07/1/2016 16:21

We need some good news

[dosser2] 07/1/2016 16:21

We need some good news

[howdlep] 07/1/2016 16:14

Jack-up rig completed, awaiting testing and commissioning. WH Ireland very bullish on future rig order margins.

Cash in the bank for acquisitions.

Very small free float, so moves quickly. Now oversold.



This was the WH Ireland note after the 28/9/14 Interims. Obviously the jack-up rig has now been completed and at 17p the market cap is currently £5.55m and NOT £555m as advfn states. That has not been reset post share consolidation:-

Amedeo Resources* (AMED) – Speculative Buy – Interims – costs reduced in a challenging market

Market Cap £8.2m Price 25p Target 75p
​

Amedeo Resources is a resource and energy related infrastructure and asset investment company. This morning, the Group has reported interim results, which demonstrate a tight control of costs against the challenging market backdrops in which Amedeo’s investment companies operate. Administrative costs declined by 25.4% to $0.3m, with cash administrative costs down 45.3% to $0.2m as a result of fees associated with the investment made in the YZJ JV and non-recoverable VAT in the prior year. The overall loss on ordinary activities stood at $0.6m (H1 2014A $0.8m), with the loss per share at 2.09c. Net cash increased to $3.3m (FY 2014A $1.7m), benefitting from the repayment from MGR of the $2.0m convertible loan (with the $1.9m loan outstanding to Amedeo still remaining). As at 30 June, the carrying value of investments in associates stood at $18.6m (H1 2014A $19.7m).
​

The first rig order, for a Le Tourneau Super 116E Class design, self-elevating mobile offshore jack up drilling rig, is reported to have continued to quality and is on schedule to be completed by the end of this year, and ahead of commissioning during 2016. Against the current market backdrop, no further orders have been obtained but the New Yard is absorbing container block overspill from Yangzijiang Shipbuilding’s yards. MGR scaled back its iron ore operations given the price declines, and is currently exploring other broking opportunities, including in soft commodities.
​

We make no changes to our estimates following the results (FY 2015E EPS -4.1c, FY 2016E EPS 1.9c). The potential for the Group is significant given the backing provided by operating partners, majority shareholder, track record of management and proven ability to keep costs to a minimum. Set against these positives, this remains an early stage investment in a Group whose principal investment has a limited track record in an extremely challenging market. However, given the significant potential when the cycle turns, we maintain our 75p share price target and Speculative Buy stance.



John Cummins

[e-mail]

020 7220 1755

[davethechef] 22/12/2015 12:04

Yesterday's analyst report 'strong buy'

hxxp://www.risersandfallers.com/2015/12/21/wc-211215-anaylsts-consensus-for-amedeo-resources-lonamed/

[oilbuy] 21/12/2015 08:47

No mention of budget in that RNS or timescales

[davethechef] 18/12/2015 09:14

Our client.
The Rig has been stated 'end of year 2015' but looking more like next year now, when we should receive reminder of payment.

hxxp://www.prinsipodc.com/rigs/

[davethechef] 08/12/2015 12:27

This today's report/requirement for Clean Energy Vessels/LNG infrastructure looks encouraging, if YZJ Offshore Engineering/Amedeo Resources 'can pull their finger out!'

hxxp://splash247.com/beijing-details-eca-plans/

Chinese authorities are acutely aware of its citizens growing anger at the dreadful state of air quality in the People’s Republic. As a result sweeping changes are taking place across many industries. Many Chinese ports are looking at installing shore power for ships while the government is promoting the use of LNG as a ship fuel with the Yangtze serving as a petri dish for this experiment with a view to a national roll out of LNG bunkering infrastructure.

[davethechef] 12/11/2015 16:05

Maybe Glen Lau, Amedeo's CEO, will give greater insight on our long term strategies, once the Rig is delivered to the Middle East, and we finally pick up a contract to build these clean energy vessels, as highlighted by the Chairman of Yangzijiang Shipbuilding.
Although, last September's Results did state 'YZJ offshore has the capability to build many different vessels and blocks. In addition, we do not expect the weakness in the rig market to continue in the medium term,"

He mentions different vessels, but as for the rig market, his opinion seems to differ from the Chairman of Yangzijiang, whose bearish.

[davethechef] 12/11/2015 15:43

On offshore fabrication. “Progress on the jack-up rig is normal, and on track for year-end scheduled delivery. The customer is from the Middle East, so there are no worries on it taking delivery. Yangzijiang has not given up on the offshore business, but under the current oil price environment and with our own current capabilities, we will not expand this business. We are happy we decided to take only one order when the market was hot – now competitors like Shanghai Waigaoqiao (Free Trade Zone Development Co Ltd) (600648 CH, NR) and COSCO (COS SP, NR) are suffering. We will use clean-energy vessels (liquefied natural gas/liquefied petroleum gas carriers) to replace offshore growth.”

Taken from 11 August this time, NextInsight website, see below
hxxp://www.nextinsight.biz/index.php/story-archive-mainmenu-60/927-2015/10196-yangzijiang-in-chairman-ren-s-own-words

[oilbuy] 05/11/2015 21:53

DaveTheChefThanks for that !